FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-002: Audit Adjustments
Criteria - The Corporation’s management has the responsibility to record, process, and summarize the
accounting data to ensure that uses of the data have complete and accurate accounting records. Nonprofit organizations are also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition - An adjustment was proposed to the financial statements to record the donation of a building and land with a total value of $2,180,000. Context - Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause - The Corporation does not normally receive noncash contributions and does not have an established history of recording such transactions. The combination of the transition and the new or out of the ordinary transactions contributed to them not being recorded properly. Effect - Members of management, the Board of Directors, and any other users of the Corporation’s internal books and records did not have complete and accurate information. Recommendation - We recommend the Corporation establish procedures to regularly review out of the ordinary activities to ensure its accounting is complete and accurate. Auditee's comments and response - The Corporation has received property donations on occasion over the years. The donated property was not recorded at fair market value at the time of closing due to the timing of closing in December 2023, and the immediate transition of their financial controller early in January 2024. This omission was caught by the auditors prior to internal staff due to the key staff transition. Going forward the CEO and CFO will meet monthly to review financial statements and transactions and make sure all donations and other transactions are recorded according to accounting policies. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management
FINDING 2023-003: Unauthorized receipt of COVID-19 Supplemental Payments (CSP) Criteria - Section 8 owners who took distributions of surplus cash following the announcement of CSPs on July 23, 2020, are not eligible to receive a CSP for expenses incurred in the first, second, or third operating periods (March 27, 2020 to March 31, 2021). The Corporation must be able to substantiate the costs submitted for reimbursement and the costs must fall under the eligible cost category for which they were submitted. Condition - The Corporation received CSP’s for all five program operating periods. The Corporation received reimbursement for expenditures in eligible expense categories different from the expense categories applied for. Questioned costs and how they were computed - $89,393. The questioned costs are the CSP funds received that the projects were either not eligible for or that were received for expenditures that were different than those used in the CSP applications. Context - The Corporation is responsible for compliance with Section 8 program requirements, including any special provisions or programs that me be included with the Section 8 cluster. Cause - The management company applied for reimbursement of expenses on behalf of the Corporation for all five program operating periods, when the Corporation was only eligible for program periods 4 and 5. The Corporation received reimbursement for eligible expense categories different from the expense categories applied for. Effect - The Corporation received federal funds it was not eligible to receive. Recommendation - We recommend that the Corporation contact HUD or the Section 8 HAP contract administrators to inform them of the error and to verify how they would like to address the situation. Auditee's comments and response - The applications for reimbursement for program periods 1 through 3 were made in error. The Corporation has contacted HUD and is awaiting a response. Responsible party for corrective action: Megan Netland – Vice President of Asset Management